| Case ID |
15053500-7e42-4974-90a8-fcbfa606b9ad |
| Body |
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| Case Number |
WRIT PETITION Nos. 5606 & 5616 OF 2015 |
| Decision Date |
May 01, 2015 |
| Hearing Date |
|
| Decision |
The court held that the recovery proceedings initiated against the petitioner were illegal and invalid since the petitioner had not been assessed nor issued a notice of demand for the assessment year 2012-13. The petitioner was a newly incorporated entity not liable for tax dues of the predecessor corporation. The court emphasized that tax recovery can only proceed following proper assessment and demand issuance under the Income-tax Act. It concluded that the actions taken by the Revenue against the petitioner were without jurisdiction and wholly illegal, allowing the writ petitions and quashing the prohibitory orders and attachments against the petitioner. |
| Summary |
This case involves the Telangana State Beverage Corporation Ltd. challenging the prohibitory orders and warrants of attachment issued against it for the recovery of tax dues from its predecessor, Andhra Pradesh Beverages Corporation Limited (APBCL). The court determined that the petitioner, established under the Companies Act, 2013, was not liable for the tax dues since it was incorporated after the relevant assessment year. The ruling underscores the principles of tax law regarding assessments and recovery procedures. The court ruled that the Revenue's actions were without jurisdiction, emphasizing the need for lawful procedures in tax recovery. This case highlights key issues in corporate law, taxation, and the legal responsibilities of newly formed entities. The decision also raises important questions about the implications of corporate reorganization and the continuity of tax liabilities across different corporate entities. |
| Court |
High Court of Telangana
|
| Entities Involved |
Union of India,
Ministry of Finance,
Telangana State Beverage Corporation Ltd.
|
| Judges |
Kalyan Jyoti Sengupta, C.J.,
Sanjay Kumar, J.
|
| Lawyers |
K. Ramakrishna, Advocate General for the Petitioner,
B. Narayana Reddy, Asstt. Solicitor General for the Respondent,
J.V. Prasad, Standing Counsel for the Respondent
|
| Petitioners |
Telangana State Beverage Corporation Ltd.
|
| Respondents |
Union of India, Ministry of Finance
|
| Citations |
2015 SLD 2465,
(2015) 377 ITR 622
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
222,
220,
156
|